BUSE Price Forecast Based on Dividend Discount Model

A technique commonly used by dividend investors to value dividend-issuing stocks is the Dividend Discount Model (DDM), which seeks to determine a fair share price based on the dividend provided by the company relative to a number of other company-specific factors. Regarding First Busey Corp, the DDM model, as implemented by StockNews, implies a positive return of 16.86% relative to its current price. Some interesting points we thought investors may wish to consider regarding the dividend discount model forecast for First Busey Corp are:

• Relative to all dividend yielding stocks in our set, First Busey Corp's dividend yield of 5.02% is in the top 23.91%.
• If we compare the valuation opportunity a dividend discount model provides relative to other dividend stocks in the Financial Services sector, the expected return of 16.86%, based on the stock's current share price and target price based on a dividend discount model, is greater than 69.44% of the DDM-forecasted return of its its sector peers.
• Out of all stocks in our universe of US-listed dividend-issuing stocks, First Busey Corp bears a discount rate, according to our calculations, lower than 69.44% of them (lower discount rates are generally perceived as positive, and a sign of lower risk).
• In terms of who is growing the amount of dividends they return to shareholders, First Busey Corp has been increasing its dividends at a faster rate than 72.35% of US-listed dividend-issuing stocks we observed.

BUSE Dividends vs. Peers